Visit the Wonderland Hill Development Company Web site to find out about the developer of the Hearthstone Cohousing Community.

HEARTHSTONE MEMBERSHIP AGREEMENT

This Agreement, between Hearthstone Cohousing, Wonderland Hill Development Company, and _________________________ , a household acting as one Member, describes the commitments, options and rights of membership in Hearthstone Cohousing.

Membership: All membership in North Denver Cohousing (NDCH) community, dba "Hearthstone", is defined by household unit, each household representing one Member. There are differing categories of membership with differing obligations and privileges. Unless otherwise specified, this Agreement applies only to Full Members and Intending Members, as defined below.

Full Members participate in consensus decisions and are expected to:

	Attend all general meetings possible
	Actively participate in at least one team (participation by only one member of a household is acceptable but not preferred). Limited participation is acceptable for those members residing out of town.
	Pay an initial $30 membership fee to NDCH, check payable to Hearthstone, sent to: Honey Niehaus 4730 West 37th Ave #9 Denver, CO 80212
	Invest contributions equal to 3.5% of estimated base unit cost, increasing to 5% of final purchase price at the signing of the Purchase and Sale Agreement. Checks are made payable to: North Denver Cohousing, LLC Wonderland Hill Development Company 745 Poplar Avenue Boulder, CO 80304
	Formally pre-qualify for a mortgage (See Outline of Unit Selection / Prequalification Process in the Addendum)
	Full Members will receive a New Member Notebook

Intending Members are Members who pay the initial $30 fee to NDCH. In addition, the Intending Member must pay an additional minimum payment of $500, (payable to North Denver Cohousing, LLC), sent to Wonderland Hill Development Company, 745 Poplar Avenue, Boulder, CO 80304. The Intending Member must commit to additional equal monthly payments to reach the level of full membership within 4 months of initial fee payment (unless special arrangements are made with the finance team). Intending Members:

	May participate in group discussions and decision making with their first payment but are not allowed to block consensus
	May select a unit only after becoming a Full Member (See Outline of Unit Selection/Prequalification Process under Wonderland Hill Development Policies in the Addendum)
	Intending Members will receive a New Member Notebook

Other requirements and benefits are the same as for Full Members.

Associate Members have paid the initial $30 fee only. They are allowed to participate in discussion but are not involved in the decision-making process.

Observers may attend an unlimited number of meetings in order to learn more about North Denver Cohousing and the cohousing concept, but should play a limited role in group meeting discussions and do not participate in decision-making.

Withdrawal: Members may withdraw from North Denver Cohousing at any time, with agreement to the following provisions:

A.The initial $30 membership fee that was paid to a member of the process team, or currently to "Hearthstone", is non-refundable.

B. Any accrued sweat equity credits are non-refundable.

C. All cash contributions, including amounts paid for workshops or to achieve full membership, in excess of the $30 initial fee, will be refunded by the LLC at the end of the project, provided there are adequate profits available from the project.

D. A withdrawing member will notify the Community and Wonderland Hill Development of their withdrawal by completing a Member Withdrawal Form and sending it to:

Wonderland Hill Development Company
745 Poplar Avenue
Boulder, CO 80304

E. Additional contributions of up to $5,000 over the amount required to achieve full membership, made to earn Bonus Credit, will be converted to a promissory note dated from January 16, 2000, the end date of the program, to be repaid at the close of the project.

F. Money applied by a withdrawing Member toward a 3.5% to 5% down payment on the purchase of a unit, will be converted to a promissory note, dated from the Member's date of withdrawal, to be repaid at the close of the project.

G. If a Member decides to withdraw following the signing of a Purchase and Sale Agreement on a unit, the terms of the withdrawal will be determined by the provisions of the Intent to Purchase Agreement and are outside the scope of this Membership Agreement. Consult with Wonderland Hill Development regarding the provisions of the Intent to Purchase Agreement.

Decision-Making: All decisions made by the Community are made according to the written procedures established by the Community (Established Process) and maintained by the Process Team. Once the Community makes a decision, the decision is binding on all members unless amended by the Community through the use of the Established Process.

Unit/Lot Reservation: Units will be selected according to the Addendum "Unit Selection Process and Lot Premium List".

Changes to this Agreement: This agreement may be amended by the Established Process of the Community. Upon amendment, members will be obligated to sign the amendment to the agreement.

Risks and Disclaimers:
A. All workshop payments, payments made to achieve full membership, additional contributions and down payments are at risk. If the project fails, all or most of the money contributed to the project may be lost. Expenditures related to the feasibility of the project may be lost if land proves inadequate or if marketing effort fails to achieve a 70% presale level by the time of closing of the construction loan at groundbreaking.

B. The developer requires a 5% down payment of the final unit cost at the time the Member enters into a Purchase and Sale Agreement for the unit, to coincide with the date for closing of the construction loan at groundbreaking. The developer will give Members as much advance notice as possible regarding the closing date for the construction loan.

C. There are no guarantees or warranties as to the project's timing, cost of development or units, design and size of units, availability of financing, or any other contingencies in this project. Final design, pricing and size of units will be established at the time a purchase and sale agreement is signed for each unit.

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PARKING POLICY

Approved June 8, 2000

Note: This policy will need to be revisited after all homes have been occupied and a history of visitors and off street parking has occurred.

I. Resident Parking:

Each housing unit within the Hearthstone Community has the right to a mimum of one designated parking space. A parking space is defined as either a garage, carport, or an uncovered parking space. If a housing unit decides in the beginning not to choose a designated parking space, it retains the right to choose a parking space at a later date or if the unit is resold the new owner retains that right.

Units D & E which include a double garage as part of the unit will not be allowed additional parking except for Guests who may use the visitor parking spaces. Units A, B, C, F, and G will have rights to one parking space and may purchase one additional space if available on a 1st come 1st serve basis when full membership is reached and thereafter on a waiting list basis. Ownership of a 2nd parking space may be terminated at any time if a unit without a parking space decides to choose one, based on the rights of each unit's minimim.

II. Visitor Parking:

A minimum of 4 to a maximum of 7 uncovered parking spaces will be reserved for Visitors of the community from the hours of 9am til 9pm. After 9pm a resident may use the Visitor's parking spaces as long as they are out by 9am the next day.

III. Price of Parking Spaces:

A. Garage = $10,000.00

B. Carport = $6,500.00

C. Uncovered space = $270.00

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PET POLICY

The Hearthstone community includes many pets. Hearthstone members acknowledge the fun, affection, comfort, and meaning these animals add to their families' lives. We also acknowledge that some members may prefer neither to have pets nor to interact with others' animals. This policy regarding pets is intended to promote a harmonious relationship among pets, pet owners, and non-pet-owners and a peaceful, clean, and safe environment for all.

Each pet owner is responsible for their animal's behavior and should see to it that their pet is not a nuisance or danger to others. If a member has a concern about a specific animal, he/she should speak directly to the owner.

Please do not bring pets into the common house. Service animals are an exception. Leashed animals may accompany their owners who are picking up mail in the atrium.

Dogs should not be allowed to wander loose. Owners are responsible for thoroughly cleaning up their dogs' poop at the time of deposit. Owners are expected to ensure that their dogs do not bark excessively and to be responsive to concerns expressed by others regarding dog noise or other problem behavior.

Cats should not be allowed out without a collar and bell, in order to protect the bird population. Owners of outdoor cats are expected to do their best to monitor potential problem behavior and to be responsive to concerns expressed by others.

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ASSOCIATE RESIDENT POLICY

Definitions
Associate Resident: Any nonowner living in the community for more than 60 days is considered an Associate Resident. Associate Residents may include renters, family members, and/or friends. Associate Residents are expected to participate fully in community activities.

Guest: A person staying in the community less than 60 days is considered a Guest. Guests are not expected to participate in community activities, but they are welcome to do so.

Owner: A person who owns a unit individually or jointly and occupies that unit is an Owner.

Absentee Owner: A person who does not live at Hearthstone and instead rents out his/her unit is considered an Absentee Owner.

Intent of Hearthstone Associate Resident Policy
In order for this policy to capture community expectations for any type of long-term nonowner resident, it is titled Associate Resident Policy rather than "rental policy." The policy is designed to preserve the integrity of the community as well as protect it from potentially negative situations. The policy is intended to establish fairness and clarify expectations for both Associate Residents and Owners. Consensus by the community can create special exceptions to or exemptions from this policy for any Associate Resident or Owner, with the intent of improving rather than limiting community living.

Associate Residents should be integrated fully in terms of participation in our community. They need to be known to us and we to them so that we can develop the bonding and trust that allows us to feel safe and to be assured that our children can feel safe with every adult in the community. This implies that persons not interested in participating are not appropriate for long-term (more than 60 days) residence at Hearthstone.

Expectations for Owners Who Wish to Rent or Expand Their Household
When deciding whether to rent out part of their home, community members are asked to consider that adding population to Hearthstone has an impact on the whole community. Hearthstone members have decided that, for the good of the community, there will be limitations on the number of Associate Residents living in Hearthstone. The maximums are as follows: either 6 separate households with associate residents or 12 individuals at any one time.

Owners must have Associate Residents who are renting sign a lease, a copy of which will be kept on file by the Board of Directors. A Community Living Policy, including guidelines on subjects such as pets, smoking, guns, and parking, will be signed by renters as an addendum to the lease. Nonrenting Associate Residents are also expected to sign the Community Living Policy.

Expectations for Associate Residents
Associate Residents, like new Owners, are expected to attend an orientation to the community. Associate Residents as well as Owners will be asked to sign a Participation Agreement when moving into Hearthstone.

Absentee Ownership
Absentee ownership is not encouraged at Hearthstone. However, if absentee ownership does occur, such an Owner is required to have an Owner who lives at Hearthstone manage his/her property. On-site management provides Associate Residents with information and support; it also provides Hearthstone with a channel for dealing with any issues that may arise involving Associate Residents.

Issues of Compliance
It is in the best interest of the community to ensure that community goals, values, and quality of life are preserved and that all residents comply with this policy, with Hearthstone bylaws, Hearthstone Covenants, Conditions and Restrictions (CC&Rs), and City of Denver zoning regulations and building codes as specified in Hearthstone's CC&Rs. Approval must be sought for any variance that will affect the well- being of the community, as specified in this policy.

Exceptions to the Hearthstone Associate Resident Policy
Exceptions may be made to anything in this policy for special circumstances. If the percentage of Absentee Owners in the community reaches more than 10 percent, this policy will be reconsidered by the community.

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HOME BUSINESS POLICY

The intent of the Home Business Policy is to ensure that the residential character of the Hearthstone community is preserved. It is understood that many residents who work the majority of the time elsewhere may also have home offices. This policy addresses members whose primary place of business is their home -- e.g., child care providers, therapists, product salespeople.

Residents are asked to ensure that their home businesses (a) are permitted under local zoning codes; (b) use unlit, discreet signage on their unit; (c) involve no parking needs beyond those equivalent to having a visitor; and (d) cause no undue negative impact on the community -- i.e., do not significantly increase traffic to and around the community, are not a source of objectionable noise, do not involve any illegal activity.

As a courtesy, residents planning to engage in a home business are asked to share their plans with the community so that questions can be answered and potential concerns addressed.

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